Spicers boosts Aus earnings

Paper merchant Spicers has increased its earnings in Australia, and across the group, despite a poorer New Zealand result.

The company performed strongly in Australia, with a 69.9 per cent increase in earnings from the pcp to $3.07m from $1.08m on sales which increased slightly to $103.7m from $102.8m, with Spicers attributing the profit rise to cost savings and improved trading performance.

Group net sales revenue was one per cent down from the pcp at $193.2m from $195.2m, with its print and packaging categories down 2.7 per cent, balanced by a 5.8 per cent growth in its sign and display revenue.

Print and Packaging was down to $152.9m from $157.1m while Sign and Display was up to $40.3m from $38.1m.

In Asia, underlying EBIT is 5.6 per cent up from the pcp, driven by increased sales revenue, while in New Zealand underlying EBIT is down 5.1 per cent.

Spicers 1HY statutory profit after tax for the period ending December 31 is $1.9m, a fall of $1.7m from the pcp, while earnings before interest and tax increased $1.3m, reaching $4.5m.

Restructuring formed part of the cost savings measures in Australia including corporate, saving $1m.

Profit after tax from continuing operations of $2.7m is 89.1 per cent up from the pcp.

David Martin, CEO, Spicers, says, “I am pleased to be able to report a significant increase in group underlying earnings for the first-half of the 2018 financial year, a result of our people across the group successfully executing against our strategies over the past year.

“As promised, we are realising cost savings in our Australian organisation by improving operational efficiency and streamlining administrative activities. Further, our structured approach to portfolio management and market engagement is driving improvements in trading and profit returns across all our product revenue streams.

“Our Asian operations have grown their revenues and earnings, particularly in print and packaging categories in Malaysia. Our New Zealand business continues to deliver healthy returns in flat market conditions, with the recent Sign Technology acquisitions contributing revenues and profits as expected.

“We continue to closely manage working capital and cash across all our businesses. Inventory levels have reduced in comparison to both June 2017 and prior year balances, driven by our focus on supply chain efficiency and return on inventory investment in every product portfolio.

“Over the past year we have made strong progress developing an efficient and learning organisation, while delivering on our promises to customers and shareholders. Going forward we will continue to focus on optimising operating returns and cash flows in print and packaging categories, while generating profitable revenue growth in sign and display and other new growth categories.”

This News article appeared in the March 2018 issue of Australian Printer Magazine

Australian Printer has been published continuously since 1950 and is woven into the fabric of the Australian print industry. Each issues provides insight, analysis and unrivalled content covering all aspects of the business of print.

Australian Printer has developed a reputation as the leading printing industry resource. Our team of journalists provides lively, thoroughly researched and independent news, as it happens. Join now for free and get full access to all our premium content plus our industry news bulletins and deals on products and services.

* Required field

1) Login Details

Username*

* Username required

Email*

* Email address required

* Invalid Email address

Password*

* Password required

Confirm Password*

* Password confirmation required

* Passwords don't match!

2) About You

First Name*

* First name required

Last Name*

* Last name required

Country*

* Country req'd

State*

* State req'd

Job Function*

* Job function required

Company name*

* Company required

Company size*

* Size required

Industry Sector*

* Primary business required

3) Email Newsletters

Receive the latest Australian Printer news and reviews directly to your inbox. Select the newsletters you would like to receive below:

Daily newsletter

Daily Australian Printer bulletinConveniently delivered to your inbox, the Australian Printer newsletter will keep you informed on the latest print industry news relevant to Australian and New Zealand print professionals.

Special Offers and Promotions

Australian Printer will keep you up to date with special offers, promotions, competitions and new products.

At no time will your email be provided to any other company.

I agree to the Terms & Conditions and Privacy Policy and acknowledge that I will receive industry news emails as well as emails regarding deals on products and services
*

* You must agree to the terms of the Privacy Policy and Terms & Conditions to register an account

Please check your email

A confirmation email has been sent to your email address - SUPPLIED EMAIL GETS INSERTED HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can start posting.

If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain https://www.australianprinter.com.au to your white-listed senders.